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NHPC Ltd

NSE: NHPC BSE: 533098

79.50

(0.56%)

Sat, 23 May 2026, 08:27 am

NHPC Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (2.2x coverage).
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
  • NHPC's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • NHPC's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

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Pros

  • Cash flow for NHPC is expected to increase by more than 50% in 2 years time.
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Cons

  • NHPC's earnings are expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
  • NHPC's earnings growth is positive but not above the India market average.
  • NHPC's earnings growth is positive but not above the low risk savings rate of 7.2%.
  • NHPC's earnings are expected to decrease over the next year.
  • NHPC's net income is expected to decrease over the next 2 years.
  • NHPC is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Renewable Energy industry average.
  • A decline in NHPC's performance (ROE) is expected over the next 3 years.
  • NHPC's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • NHPC's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
  • NHPC's revenue growth is positive but not above the India market average.

health

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Pros

  • NHPC is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NHPC is profitable, therefore cash runway is not a concern.
  • NHPC is profitable, therefore cash runway is not a concern.
  • The level of debt compared to net worth has been reduced over the past 5 years (61.8% vs 58.7% today).
  • Interest payments on debt are well covered by earnings (EBIT is 9.3x coverage).
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Cons

  • Debt is not well covered by operating cash flow (13%, less than 20% of total debt).
  • Debt is not covered by short term assets, assets are 0.5x debt.
  • NHPC's long term commitments exceed its cash and other short term assets.
  • NHPC's level of debt (58.7%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

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    Cons

    • The average tenure for the NHPC board of directors is less than 3 years, this suggests a new board.
    • The average tenure for the NHPC management team is less than 2 years, this suggests a new team.

    past

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    Pros

    • NHPC's 1-year earnings growth exceeds its 5-year average (27% vs 3.1%)
    • NHPC's year on year earnings growth rate has been positive over the past 5 years.
    • NHPC has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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    Cons

    • NHPC used its assets less efficiently than the IN Renewable Energy industry average last year based on Return on Assets.
    • NHPC has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • NHPC's earnings growth has not exceeded the IN Renewable Energy industry average in the past year (27% vs 30.9%).

    value

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    Pros

    • NHPC is good value based on earnings compared to the India market.
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    Cons

    • NHPC's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • NHPC's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • NHPC is overvalued based on assets compared to the IN Renewable Energy industry average.
    • NHPC is poor value based on expected growth next year.
    • NHPC is overvalued based on earnings compared to the IN Renewable Energy industry average.
    • 533098 underperformed the Renewable Energy industry which returned -4.4% over the past year.
    • 533098 underperformed the Market in India which returned -14.5% over the past year.
    • BSE:533098 is flat (0.5%) underperforming the Renewable Energy industry which returned 13% over the past month.
    • BSE:533098 is flat (0.5%) underperforming the market in India which returned 8% over the past month.

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